Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

v2.4.0.8
DISCONTINUED OPERATIONS
 3 Months Ended
Dec. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
3.
DISCONTINUED OPERATIONS
 
On September 30, 2012 the Company discontinued its Clinical Services Operation at its wholly-owned subsidiary Neuro Therapy Clinic, Inc. (“NTC”), because the operation had persistent losses which could no longer be supported by the Company. Furthermore, the Company chose to focus its limited cash resources to conduct its clinical trial at Walter Reed.
 
As of September 30, 2012 the staff of NTC had departed and the premises were vacated. Prior to the clinic’s closure all patients were sent letters informing them where they could continue their treatment with their usual provider. Two of NTC’s providers joined a nearby psychiatric clinic operated by Compass Health Systems (“Compass”). NTC executed a business associate agreement with Compass to allow the confidential sharing of patient information and to enable the providers to continue to treat their patients. All revenues and operating expenses under this management agreement would belong to Compass. All NTC assets and liabilities incurred prior to October 1, 2012 would remain with CNS Response.
 
Summary Financial Data of Discontinued Operations:
 
Revenues, income before income taxes and net loss of NTC which are included in discontinued operations are as follows:
 
 
 
Three Months Ended
December 31,
 
 
 
2013
 
2012
 
Neuro-Therapy Clinic
 
 
 
 
 
 
 
Revenues
 
$
-
 
$
-
 
Expenses
 
 
3,600
 
 
12,200
 
Operating Loss before taxes
 
$
(3,600)
 
$
(12,200)
 
Taxes
 
 
-
 
 
-
 
Net Loss
 
$
(3,600)
 
$
(12,200)
 
 
The assets and liabilities of NTC are as follows:
 
 
 
As at December 31,
 
 
 
2013
 
2012
 
ASSETS:
 
 
 
 
 
 
 
Cash
 
$
-
 
$
15,100
 
Assets of Discontinued Operations
 
$
-
 
$
15,100
 
 
 
 
 
 
 
 
 
LIABILITIES:
 
 
 
 
 
 
 
Accounts Payable
 
$
88,500
 
$
159,600
 
Accrued Payroll Liabilities
 
 
120,300
 
 
138,500
 
Note Payable (see Note 8)
 
 
44,600
 
 
-
 
Liabilities of Discontinued Operations
 
$
253,400
 
$
298,100